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Budget 2020 impact on Cement Sector

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Tax holiday for affordable housing extended by a yearThe deadline for approval of projects also extended to March 31, 2021.Vandana Ramnani@vandanaramnani1

Finance Minister Nirmala Sitharaman in the Budget 2020 proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by a year to March 2021.
"In order to promote affordable housing projects, I propose to extend the date of approval of affordable housing projects for availing tax holiday by one more year," the finance minister said.
Tax holiday for affordable housing developers was also extended by a year.

Affordable housing projects are given a deduction under Section 80IBA of the Income Tax Act. To promote Housing for All by 2022, the sunset date for taking approval was extended till March 31, 2020, in the Interim Budget 2019.
"Affordable housing and co-living are two sides of the same coin. The Budget further strengthened the commitment of government to these ventures," said Arnab Ghosh, National Director, Design & Build and Fitouts, at Colliers International India.

Live MintBudget 2020: Sitharaman allocates ?1.7 trillion for transport infrastructure

Shreya Nandi

Proposes setting up of 9,000 km economic corridor

A total of 12 lots of highway bundles will be monetised by 2024New Delhi: Finance minister Nirmala Sitharaman on Saturday proposed to allocate ?1.7 trillion to improve connectivity via road, rail, air and waterways.

"A total of 12 lots of highway bundles will be monetised by 2024," Sitharaman said in her budget speech.

The minister also proposed to set up 9,000 km economic corridor and 2,000 km coastal corridor and strategic highways. Delhi-Mumbai expressway that is currently in the works will be completed by 2023. The expressway is expected to drastically cut down travel time between the two cities.

To enhance air connectivity, Sitharaman proposed to build 100 more airports by 2024.

The government’s focus on infrastructure indicates its commitment to revive investment cycle and create jobs to spur growth at a time when the economy is in the middle of a deep downturn.

According to the latest estimates, the Indian economy will grow at 5% in the current fiscal ending March. The growth projected is lower than the 6.1% recorded in 2018-19. In the quarter ended September 2019, economic growth had hit a six-year-low of 4.5%.

In December, the government launched ?102 trillion worth infrastructure projects, under national infrastructure pipeline (NIP), to develop social and economic infrastructure in the next five years.

"There are 6,500 projects across various sectors, including housing, water, clean energy, healthcare for all, education, airports, irrigation projects," Sitharaman said, adding that NIP envisions improving ease of living, kick-start construction work, and create jobs.

To improve connectivity via railways, Sitharaman said there will be more Tejas-like trains for tourist destinations. Besides, there will be immense focus on four station redevelopment programme that is expected to have private sector participation.

The government will also provide 20% equity for Bengaluru suburban transportation project, which is worth ?18,600 crore. At least one major port would be listed on the stock exchanges, the finance minister said.

Budget 2020: Govt will advise utilities to close down thermal power plants violating clean air norms

ET Energyworld.com

Aarushi Koundal & Anshul Joshi

As part of its Intended Nationally Determined Contribution, the energy intensity of India’s growth is targeted to decline by 33 to 35 percent by 2030 compared with 2005

New Delhi: Finance Minister Nirmala Sitharam has said the government will advise utilities to close down thermal power plants in violation of National Clean Air Programme (NCAP) norms in her Budget speech on Saturday.

"Utilities running thermal power plants that are old and where the carbon emissions are higher will be advised to close down and that land will be used for alternative energy purposes," FM Sitharaman said while detailing plans for environment and climate change in the Budget.

Speaking about government’s efforts in furthering the clean air norms, Sitharaman added that the International Solar Alliance will help in achieving Sustainable Development Goals, climate change, disaster resilience, and the Nationally Determined Contributions under the Paris Agreement.

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Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

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Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

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Concrete

WCA Welcomes SiloConnect as associate corporate member

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

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Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

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TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

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